NYSE$SHO

Sunstone Hotel Investors Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Sunstone's first quarter results exceeded expectations due to accelerated corporate and group demand, with group hotels performing particularly well.

Sunstone Hotel Investors reported a net income of $21.1 million for the first quarter of 2023, compared to $15.1 million in the same period of 2022. Comparable RevPAR increased by 32.0% to $218.82, and Adjusted EBITDAre increased by 121.0% to $60.0 million. The company also repurchased $21 million of its common stock and refinanced its 2023 debt maturity.

  • Net income increased to $21.1 million, compared to $15.1 million in the first quarter of 2022.
  • Comparable RevPAR increased by 32.0% to $218.82.
  • Adjusted EBITDAre increased by 121.0% to $60.0 million.
  • The company refinanced the mortgage secured by the Hilton San Diego Bayfront with a new $225 million unsecured term loan.

Headline financials

Total Revenue

$243M

Previous: $172M+41.3%
EPS (adj)

$0.21

Previous: $0.08+162.5%
Total Portfolio RevPAR

$218.82

Previous: $148.65+47.2%
Capital Expenditures

-$23M

Previous: -$30.8M+25.4%
Free Cash Flow

-$1.93M

Previous: -$15.7M+87.7%
Net Income

$21.1M

Previous: $15.1M+39.4%
Operating Income

-$219M

Previous: -$179M-22.1%
Gross Profit

$121M

Previous: $78.4M+54.9%
Cash & Equivalents

$96.4M

Previous: $215M-55.1%
Total Assets

$3.07B

Previous: $2.95B+4.1%
Stock-Based Comp

$2.43M

Previous: $3.58M-32.2%

Revenue & EPS history

Sunstone · Revenue · Quarterly

$243M

Q1 2023+41.3%vs Q1 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

For the second quarter of 2023, Sunstone Hotel Investors expects a net income between $29 million and $35 million, a total portfolio RevPAR growth of +6.5% to +8.5% compared to the second quarter of 2022, and an Adjusted EBITDAre between $79 million and $84 million.

Tailwinds

  • Net income is expected to be between $29 million and $35 million.
  • Total portfolio RevPAR growth is projected to be between +6.5% and +8.5% compared to Q2 2022.
  • Adjusted EBITDAre is anticipated to be between $79 million and $84 million.
  • Adjusted FFO attributable to common stockholders is projected to be between $61 million and $66 million.
  • Adjusted FFO attributable to common stockholders per diluted share is expected to be between $0.29 and $0.32.

Headwinds

  • Full year total Adjusted EBITDAre displacement of approximately $13 million to $15 million in connection with planned capital investments.
  • Full year corporate overhead expense (excluding deferred stock amortization) of approximately $22 million to $23 million.
  • Full year interest expense of approximately $52 million to $54 million, including approximately $2 million in amortization of deferred financing costs and approximately $2 million of noncash interest on derivatives.
  • Full year preferred stock dividends of approximately $15 million, which includes the Series G, H and I cumulative redeemable preferred stock.
  • Guidance is based in part on full year assumptions, which may be subject to change.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.0%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+1.0%

Avg return

30 days after

45%

29 / 65 earnings

Positive

+20.1%

Q3 2020

Best reaction

-10.0%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.2%+8.0%+18.3%
Q4 2025-3.7%+0.5%-7.3%
Q3 2025+1.8%+2.5%-3.8%
Q1 2025-2.9%+0.5%+0.8%
Q4 2024-5.8%-8.2%-13.9%
Q3 2024-4.1%-7.3%+12.5%
Q2 2024+0.0%-1.6%+2.4%
Q1 2024+1.9%+0.7%+0.3%
Q4 2023-0.1%+0.6%-1.5%
Q3 2023-1.5%+0.6%+5.6%
Q2 2023+0.0%-0.6%-6.0%
Q1 2023+3.5%+5.5%+4.9%
Q4 2022+7.0%+7.4%-11.6%
Q3 2022-4.0%+4.5%-0.7%
Q2 2022-0.5%+0.5%-2.4%
Q1 2022-4.9%-7.8%+1.4%
Q4 2021-10.0%-7.6%+0.9%
Q3 2021+2.2%-0.9%-15.1%
Q2 2021-1.2%-0.2%+2.7%
Q1 2021-2.1%-3.2%-2.1%
Q4 2020+6.3%+8.8%+15.5%
Q3 2020+20.1%+19.4%+38.1%
Q2 2020+4.1%+10.7%+14.7%
Q1 2020-9.5%-18.8%+13.7%
Q4 2019-1.8%-1.9%-46.8%
Q3 2019+3.3%+0.6%-1.2%
Q2 2019+0.7%-0.9%-0.5%
Q1 2019-2.3%-1.9%-6.7%
Q4 2018+2.7%+3.1%+3.2%
Q3 2018+1.5%+4.4%+2.8%
Q2 2018+0.7%+1.2%+3.3%
Q1 2018+1.8%+3.3%+6.8%
Q4 2017-0.4%-1.6%-5.9%
Q3 2017-0.8%+0.2%+0.9%
Q2 2017-1.1%+0.7%-2.9%
Q1 2017+2.6%+5.2%+5.3%
Q4 2016-0.9%-2.8%-2.8%
Q3 2016-1.9%-1.4%+19.2%
Q2 2016+2.1%+0.5%-2.4%
Q1 2016-1.2%
Q4 2015+1.4%
Q3 2015+1.6%
Q2 2015+1.8%
Q1 2015-1.0%
Q4 2014+0.8%
Q3 2014-1.0%
Q2 2014+1.8%
Q1 2014+1.9%
Q4 2013+2.1%
Q3 2013+2.1%
Q2 2013+1.0%
Q1 2013+2.0%
Q4 2012-2.0%
Q3 2012-3.2%
Q2 2012+1.6%
Q1 2012+2.0%
Q4 2009-1.8%
Q4 2011-1.8%
Q3 2011-2.9%
Q3 2010-2.9%
Q2 2011-3.1%
Q2 2010-3.1%
Q1 2011-1.5%
Q1 2010-1.5%
Q4 2010-1.5%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro